PRLA Restaurant & Lodging Matters Fall 2020

20 •  PENNSYLVANIA RESTAURANT & LODGING matters  •  Fall 2020 LEGISLATIVE CORNER STATE LOCAL State Items FEDERAL A federal judge in Western Pennsylvania ruled that aspects of the Wolf Administration’s COVID-19 mitigation strategies were unconstitutional, specifically the business shutdown order and the limits on gathering sizes. The Third Circuit issued a stay, meaning that the Administration could continue to enforce the 25/250 restrictions while it reviewed the appeal. Ultimately, the outcome of the ruling is a moot point since the state issued updated guidance on event gathering limits . Rather than set limits, the new guidance is a formula based on venue occupancy. Again, the order complicates matters and creates winners and losers, with more losers than winners— particularly for smaller venues like restaurants. The Administration updated the restaurant industry guidelines at the end of September, allowing restaurants to return to 50% occupancy as long as the restaurant self-certifies. The guidelines still prohibit bar seating, require a meal with the purchase of alcohol, and bans dine-in consumption of alcohol past 11pm. PRLA advocated for HB 2513, which would allow restaurants and private events to return to 50% occupancy (without having to certify), reinstate bar seating, and eliminate the meal requirement. HB 2513 was passed with broad bi-partisan support in both the Senate and the House. However, Gov. Wolf vetoed the bill on October 16. The House attempted an override vote on October 20 which failed by a mere two votes. This stops any efforts to pass the bill or something similar until after the election. A few days later in a highly publicized press conference, the Wolf Administration announced that it would be waiving licensee renewal fees. The $20 million ‘lifeline’ actually amounts to about a $1,500 savings for licensees. At the PLCB's October meeting, the board voted to waive renewal fees for 2021. The details on which fees will be waived, how safekeeping will be handled, and other details are outlined in the PLCB's Updated Advisory Notice No. 27. The House and Senate are in recess until after the election. While they are scheduled to return November 10, the scope of the legislative agenda will be based off of how well Republicans fare in the election. There is still over $1 billion in unspent CARES act funds which will need to be allocated by Dec. 30 of this year—at minimum, the legislature will need to determine where those funds go when they return in November. PRLA continues to work with the House & Senate to develop a grant program for the entirety of the hospitality industry. The Senate Law & Justice Committee moved two pieces of legislation in early October that PRLA supports: • HB 763 (O’Neal—R, Washington): Permits clubs to sell up to 192 ounces of malt and brewed beverages for off- premise consumption. • HB 1617 (Staats—R, Bucks): Allows holders of a Hotel (H) license that was in existence before 1949 and no longer maintain rooms to convert the license to a Restaurant (R) license for $30,000. While both bills saw movement on the Senate floor, they did not pass finally before the legislature broke for elections. The 2019/2020 Legislative Session is rapidly coming to a close. The next issue of our magazine will cover the good, bad, and ugly of this session, as well as analyze the results of the Nov. 3 election.